Luxembourg's financial center and its deposits

20.12.2013 (All day)

The December issue of the European Commission's ECFIN "Country Focus" about Luxembourg's financial center and its deposits shows the long-lasting stability of the Grand-Duchy.

The report says that, if measured in percent of GDP, AAA-rated Luxembourg hosts the biggest banking sector in the European Union which accounts for a quarter of GDP.Luxembourg has a strong sovereign with low debt ratios and the country enjoys one of Europe's lowest unemployment rates.

With 3,841 investment funds accounting for EUR 2.4 trillion under management, the country's fund administration industry is ranked as the second largest worldwide.

The country hosts many private banks as it is still perceived as an attractive location for wealth management. Even though transparency on financial assets has been increasing through several EU-led initiatives, private individuals may still prefer to keep their declared assets in the Grand Duchy, attracted by a legal framework which permits the creation of tailor-made vehicles for private wealth management.

The report also stresses that foreign subsidiaries and branches can rely on their parent companies and the overall liquidity situation is comfortable.